Wealth Exam Review

An advantage to businesses of offering credit is that credit customers...

are not as price-conscious as cash customers

What happens when processing a transaction with a debit card?

automatically withdrew funds from her business's checking account.

Mutual funds that contain both stocks and bonds are known as...

balanced funds

When Janine wants to know what others are willing to pay for a bond she owns, she looks at the...

bid price

What causes a dollar today to be worth more than a dollar in the future?

inflation

What might a company's higher-than-usual sales volume for a day indicate?

investors reacting to news from company

A critical aspect of financial planning involves...

saving money for unexpected situations

What documents could you use as a new hire to establish your eligibility to work in the United States and your identity?

a U.S. passport

Which of the following is often considered one of the safest types of investments?

government bonds

On a pay stub, the total amount of money that a worker has earned for the pay period before deductions is listed as...

gross pay

Why is estate planning important?

Ensures that your assets are divided the way you want them to be

What are some characteristics of an effective personal goal?

Measurable Has a time frame

What is a tip to aid in paying bills on time?

Pay bills as soon as they arrive

What is the best long-term investment for coping with volatile financial markets?

Stocks

What is good advice to follow to avoid excessive debt?

Think long term and be realistic about income and expenses

Caitlin has three credit cards. She receives her credit-card statement for one of the cards and has to decide how to pay the $500 she spent with that card. To pay the least for use of the credit, she should pay with __________ and make the __________ payment.

cash; full

Which of the following is a wise precaution to take when using online banking and bill pay?

change password a lot

What is a type of financial-services provider?

commercial bank

Why is it important to start early when planning for retirement?

compound interest

What is a possible consequence of having one's identity stolen?

damage to credit history

Pedro received a check in the amount of $432.87 from the Tabor Corporation, a company in which he is a stockholder. This source of income is referred to as...

dividends

Compounding can be described as...

earning interest upon interest

Chloe is preparing her income tax return for the first time. She is a receptionist, does not own any land or real estate, and has not inherited any money from a deceased relative within the last tax year. She will only be taxed on...

earnings

To encourage people to donate their blood, blood banks began paying blood donors. Surprisingly, the amount of blood donated dropped to half what it had been. Why would this have happened?

ethical motivations

Which of the following factors should be included when determining life insurance needs?

expected future expenses

What is an example of a negative incentive?

fine for littering

What kind of insurance protects you from loss if you let someone drive your car and that person has an accident?

liability

What type of insurance is intended to provide an income to an employee's dependents?

life

To obtain reliable information about securities, a potential investor might speak with a...

loan officer

What is one of the functions of money?

medium of exchange

The price of a mutual fund shares is determined by...

net asset values

While Chase was reviewing his stock performance, he saw that his commodities investment dropped .002 points from Monday's close to Tuesday's close. This drop is called the...

net change

What is associated with every choice you make due to limited resources?

opportunity cost

The consequences of your decisions result in...

opportunity costs

What is the most effective way to pay bills off?

pay highest interest bills first

What would you save (rather than invest)?

spring break

Which of the following is an example of an ownership investment?

stocks

As a recent college graduate, you want to support your school financially with a donation. However, your income barely covers your monthly expenses and college loans. What would be the least expensive way for you to make a donation to your college?

use college's card to buy things